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With demand for enterprise IT increasing across the board, 80% of managed service providers (MSPs) have significantly increased their IT budget (according to ETB Technologies). More than three-quarters (80%) of respondents said there has been an increase in demand for more enterprise IT equipment. As more businesses take data management back in-house, the shift to a hybrid cloud strategy is prevalent with many (62%) MSPs having already considered or begun the process of declouding.
MSPs deliver network, application, infrastructure and security services via ongoing, regular support and active administration on customers’ premises. More and more, they are needed to service critical IT needs, and with the consolidation of vendors, a strong MSP that covers all customer needs is more important than ever.
“The managed services model has had to adapt greatly over the past decade to meet customer needs,” writes explains Mark Appleton, Chief Customer Officer at ALSO Cloud UK. “With the shift from the traditional MSP model, where a single individual managed various IT support for clients, to a whole team and well-integrated product stack, client needs are being met and exceeded more than ever
“From our position at ALSO, we’ve witnessed significant transformations in the MSP landscape. MSPs are increasingly tasked with offering everything as a service – software, desktops, etc. – which has led to the proliferation of services as they inherit previous technology stacks. Cloud adoption has also surged, with clients migrating workloads across public and private cloud providers, thereby creating a need for managed hybrid infrastructures.
“Additionally, as security threats multiply, it is MSPs that hold the responsibility of vigilance. Compliance requirements have added complexities, and managing security issues is more crucial than ever when disruption can quickly spread across all managed clients. Yet MSPs act behind the scenes to provide critical solutions and safeguards to their clients, often remaining the unsung heroes of the technology sector.”
Appleton believes that resellers looking to transition into managed services need to first understand and meet the higher levels of customer expectations. “Clients expect more services on lower budgets. Thus, understanding the specific needs and map their business plans accordingly.”
“MSPs face constant challenges and need to be prepared for them to persist throughout 2024. As cloud adoption peaks this year, adapting to offer and manage cloud-based solutions whilst managing security threats and compliance requirements is critical for teams to rapidly adjust to.
Appleton believes that the managed services model still has ways to improve before it can be future-proof and resilient to any future industry challenges. “When it comes to MSPs preparing for the next decade and beyond, future-proofing operations should be the priority to ensure business continuity and longevity. Embracing cloud and automation by leveraging tools can enhance efficiency and scalability.
“Investing in talent is another key step; attracting and, most importantly, retaining skilled IT professionals keeps your team highly qualified, and ensures the skill pool is retained in a competitive environment. Similarly, diversifying services beyond traditional IT management to stay agile amidst changing customer needs and advancements in technology.”
